Part 2 Together with their accountant, Jason and James have completed step 1 allocation for indirect costs to be allocated to relevant activities. The purpose of doing this is so they can allocate using Activity Based Costing to work out the appropriate selling price. For example: 0 Chef assistant wages, Grocery, most electricity and water cost are allocated to cooking 0 Some % of electricity is allocated to packing. 0 Percentage of petrol together with some wages, depreciation, car insurance and registration fee and a portion of wages is allocated to purchasing. 0 Other items are allocated on proportion to the most relevant activities Once indirect costs are allocated to relevant activities, the business has the following cost information: Activity Cost pool Driver 3,368.51 Cooking $ units cooked , $2,251.34 . 5,562 6,162 Packaging units packed 600 _ $828.92 10 30 40 Kitchen Setup Number of set ups 1,944.43 pusshssns susssssshssss -m Required: a. b. c. d. Calculate indirect cost rate for all activities Allocate indirect cost to each product Calculate the full product cost for the two products Comments on the outcome and provide advice Jason and James about the selling price for each product if they are going to implement activity based costing method